Uniswap Could Go Parabolic With Fee Switch Activation, Says CryptoQuant CEO

Uniswap’s UNI token surged astir 30% pursuing Monday’s connection announcement, with the crypto trading supra $8.70 arsenic markets responded enthusiastically to the long-awaited interest power activation plan.

CryptoQuant CEO Ki Young Ju predicted the token could acquisition “parabolic” maturation erstwhile the mechanics goes live, estimating astir $500 cardinal successful yearly token burns based connected existent trading volumes.

Source: X/@ki_young_ju

The “UNIfication” proposal, jointly submitted by Uniswap Labs and the Uniswap Foundation, marks laminitis Hayden Adams’ archetypal governance connection successful the protocol’s history.

The program would redirect betwixt one-quarter and one-sixth of protocol fees to a astute declaration called the “token jar,” wherever UNI holders could pain their tokens to retreat an equivalent magnitude of crypto.

Adams revealed that Uniswap Labs has been incapable to meaningfully enactment successful governance for 5 years, greatly restricted successful gathering worth for the assemblage owed to a hostile regulatory situation that has outgo thousands of hours and tens of millions of dollars successful ineligible fees.

The connection arrives arsenic that regulatory clime shifts pursuing the departure of erstwhile SEC Chair Gary Gensler, with Hyden saying Gensler “really sucked.”

For Uniswap v2 pools, liquidity supplier fees would driblet from 0.3% to 0.25%, with 0.05% going to the protocol, portion v3 pools would spot protocol fees acceptable astatine one-fourth oregon one-sixth of LP fees, depending connected the tier.

The activation would initially screen Uniswap v2 and large v3 pools connected Ethereum mainnet, representing up to 95% of liquidity supplier fees.

Beyond interest activation, the connection includes an contiguous retroactive pain of 100 cardinal UNI tokens from the treasury, valued astatine astir $800 million.

All Unichain sequencer fees, aft covering Layer 1 information costs and the 15% allocation to Optimism, would besides travel into the pain mechanism.

The UNIfication program fundamentally restructures Uniswap’s organizational framework.

The connection seeks to disband the Uniswap Foundation, shifting astir unit to Uniswap Labs, portion remaining Foundation employees would administer the nonprofit’s $100 cardinal grants programme earlier the enactment folds.

Uniswap Labs would pivot distant from monetizing its products, mounting interface, wallet, and API fees to zero to heighten competitiveness.

The Uniswap Ethereum frontend has earned a cumulative $137 cardinal to date, including $48 cardinal successful 2025 alone.